The Wise Investor
1.3 Kate's doubts
Kate thought for a long time about the things
John had said. Although she desperately wanted the
freedom, security and time to herself that John
described, she still couldn't see how it could happen
"John," she said in a quiet and depressed voice,
"you know I have very little money. I doubt whether
I could save anything at all, since there always
seems to be another unexpected bill when I least
expect it. I am not a wealthy woman, I can't buy
properties or shares. Even if I managed to save a
little, it would never be enough to invest properly, or
make a difference to my income."
John had been expecting some doubts and fears
from Kate, and he decided to address each point as
she raised it.
"Kate, I know that you have little wealth at the
moment. However, you don't need to be wealthy to
invest your money successfully. In fact, you actually
have some advantages over wealthy people when it
comes to investment."
Kate raised her eyebrows in surprise
"I know that your money situation is sometimes
tight, Kate, and this has taught you to balance your
money carefully, and pay attention to your finances.
This is an invaluable skill that will serve you well
in the future. Wealthy people sometimes become
lazy about details, as they don't need to be careful
with money in the way that poorer people do.
They can loose their financial disciple, and this
can lead to making poor investments and paying
prices for assets which are too high.
Although you lack experience, Kate, you have
learnt some financial discipline and attention to detail